Sale of under construction building under ‘Business Transfer Agreement’ is supply of service, exempt from GST

Sale of under construction building under ‘Business Transfer Agreement’ is supply of service, exempt from GST

Applicant carrying on business of constructing residential/commercial complexes and selling thereof, sold its under construction building as a whole with its all assets and transferred rights of same to buyer including approved map from competent authority and sought advance ruling on applicability of exemption Notification No. 12/2017-Central Tax(Rate) dated 28-6-2017 on said ‘Business Transfer Agreement’. It is found that buyer has purchased the under construction building/business to carry on same kind of business as purchaser. Thus,applicant having transferred business as a going concern, it may be treated as supply of services as per serial No. 2 of Notification No. 12/2017-Central Tax(Rate) dated 28-6-2017 and same is exempted from levy of GST.

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